WHAT IS COMPANY?
A company is a kind of business structure or a business organization. The company has been evolved from sole proprietorship business structure to partnership type of business and after that the company type of business structure came up.
In case of companies money can be raised from many people all over the world in the form of capital to the company. In company the capital that we can raise is unlimited and in company each member liability is limited to the share invested.
A company is an artificial person, created by legal incorporation having separate legal entity, perpetual succession and common seal that represent the company as a whole as a person itself.
A company is the voluntary association of the person and must be incorporated under companies Act 1956 or companies Act 2013.
TYPES OF COMPANY
ON THE BASIS OF INCORPORATION
· Charter Company
· Statutory Company
· Registered Company
ON THE BASIS OF LIABILITY
· Unlimited Liability Companies
ON THE BASIS OF TRANSFERABLITY OF SHARE
· Private Company
· Public Company
Private company is owned by a private individual to run the company and in private company which has minimum membership of 2 people and maximum member of 200 people (Sec 68 sub clause (ii)). According to section 68 of Companies Act 2013 Minimum paid up capital is 1 lakh to start the company.
There is restriction on transfer of share which means if 20 people who have formed the private company these members can be the member only and cannot transfer their ownership without the consent of all the members. In private company word ltd (limited) is essential to be used.